LABSCO to Distribute Cepheid GeneXpert® Systems and Tests
LOUISVILLE, K.Y., May 19, 2011 /PRNewswire/ -- Laboratory Supply Company (LABSCO), the largest privately held supplier of diagnostic instrumentation and clinical laboratory products to hospitals, physician office laboratories, reference labs and other non-acute care settings in the United States, announced today it has entered into an agreement with Cepheid (NASDAQ: CPHD) to become Cepheid's exclusive distribution partner for its GeneXpert® Systems and tests in the US acute care hospital market for institutions with less than 150 beds. The agreement also gives LABSCO non-exclusive rights to distribute Cepheid's products to all care settings in the non-hospital market.
"We are very pleased to represent Cepheid's GeneXpert® Systems and tests as we feel that they represent the leading edge in molecular diagnostics solutions," said Steve Nielsen, LABSCO's Chairman and CEO. "We want to be the 'go to company' for high-growth diagnostics systems manufacturers like Cepheid who want to leverage our dedicated Diagnostics Systems Specialist team to get to the segments of the market that they don't serve directly. We will continue to invest in this area and our objective is to attract the finest sales talent in the industry," added Nielsen. "We believe that our focus on the small hospital, physician office laboratory (POL) and other alternate care settings is attractive to these manufacturers and unique in the industry."
"There are more than 3900 US hospitals below 150 beds which have not been a primary focus of Cepheid to date. The decision to engage on a nationwide basis with LABSCO is in line with one of our strategic growth objectives directed at expanding our reach within the US market," said Nico Arnold, Cepheid's Executive Vice President of Worldwide Commercial Operations. "We will continue to focus our direct sales efforts on the approximate 2100 hospitals which are 150 beds and above. Based on our positive experience to date with LABSCO, we are excited to be moving to national implementation of our distribution relationship. We feel strongly that our shared passion for revolutionizing molecular diagnostics through a customer-first approach will make for an ideal partnership."
Laboratory Supply Company was founded by Charles (Charlie) Davis in Louisville, Kentucky in 1972. LABSCO has nine distribution centers and has grown to be the largest privately held distributor of clinical laboratory products in the United States. LABSCO is known for its expertise in the clinical laboratory, but is also a full line distributor of diagnostic systems and laboratory supplies to the physician office laboratory (POL) and other alternate care settings. For additional information, please visit the company's website at www.labsco.com
Based in Sunnyvale, Calif., Cepheid (Nasdaq: CPHD) is a leading molecular diagnostics company that is dedicated to improving healthcare by developing, manufacturing, and marketing accurate yet easy-to-use molecular systems and tests. By automating highly complex and time-consuming manual procedures, the company's solutions deliver a better way for institutions of any size to perform sophisticated genetic testing for organisms and genetic-based diseases. Through its strong molecular biology capabilities, the company is focusing on those applications where accurate, rapid, and actionable test results are needed most, such as managing infectious diseases and cancer. For more information, visit http://www.cepheid.com.
About the GeneXpert® System Molecular Diagnostic Platform
The GeneXpert System is a closed, self-contained, fully-integrated and automated platform that represents a paradigm shift in the automation of molecular analysis, producing accurate results in a timely manner with minimal risk of contamination. The GeneXpert System is the only system to combine on-board sample preparation with real-time PCR (polymerase chain reaction) amplification and detection functions for fully integrated and automated nucleic acid analysis. The system is designed to purify, concentrate, detect and identify targeted nucleic acid sequences thereby delivering answers directly from unprocessed samples. Modular in design, the GeneXpert System has a variety of configurations to meet the broad range of testing demands of any clinical environment.
This press release contains forward-looking statements that are not purely historical regarding Cepheid's or its management's intentions, beliefs, expectations and strategies for the future, including those relating to product performance and future market opportunities. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from the company's current expectations. Factors that could cause actual results to differ materially include risks and uncertainties such as those relating to: unforeseen manufacturing problems; uncertainties in the regulatory review process for new products; regulatory developments and practices regarding testing levels; customer and market acceptance of the product; the failure of products to perform as fast or as accurately as expected, whether due to manufacturing errors, defects or otherwise; the impact of competitive products and pricing; potentially lengthy sales cycles in some markets; reimbursement rates for the products; and underlying market conditions worldwide. Readers should also refer to the section entitled "Risk Factors" in Cepheid's Annual Report on Form 10-K for 2010 and in its most recent quarterly report on Form 10-Q, each filed with the Securities and Exchange Commission.
All forward-looking statements and reasons why results might differ included in this release are made as of the date of this press release, based on information currently available to Cepheid, and Cepheid assumes no obligation to update any such forward-looking statement or reasons why results might differ.